0 sats \ 2 replies \ @Undisciplined 30 Mar 2023 \ on: Bitcoin and stoicism - Week 5: DCA strategy is the best strategy bitcoin
Something interesting to consider:
You are implicitly treating the dollar as real money while maintaining that eventually Bitcoin will be the real money.
When it comes to a dollar-cost averaging approach, you spend a fixed amount of money on the investment, but what happens when you're selling a fixed share of an investment?
As the dollar becomes not-money does the strategy change? I've never read about the inverse of dollar-cost averaging for winding down an investment.
Would you explain further? I see the point but I don't follow the scenarios
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The point of dollar cost averaging is to take advantage of the greater volatility in your investment than exists in your money.
If Bitcoin becomes money, then at some point the dollar will be the "investment" that has greater volatility. However, you're not trying to build up that investment, but rather you're trying to wind it down.
I'm just not sure if dollar cost averaging is still the prudent strategy in that scenario. It would be analogous to selling a fixed number of stock shares every month, regardless of their prices.
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